Clubs prepare union meeting and project R$ 4 billion per year with Liga

with Igor Siqueira

The two groups from Libra (Liga de Clubes do Brasil) and Liga Forte Futebol are already planning a meeting in July for conciliation between the two sides. The objective is to form, in fact, the League to organize the Brazilian. There is already a projection within Libra that the organization can generate R$4 billion in annual revenue from the rights, which represents more than double the current value.

There was a meeting of the two groups in the last few days. Libra – which brings together all teams from São Paulo, in addition to Flamengo, Botafogo, Vasco and Cruzeiro – held an assembly on Friday. Figa Forte Futebol – which has 25 teams, including Fluminense, Atlético-MG and Inter – met on Tuesday at the CBF to confirm its foundation.

In parallel, the two groups are already talking for a meeting to be held in mid-July. With this objective, two commissions were formed, one on each side, to make the meeting more productive. On the side of Libra, Corinthians, Red Bull Bragantino and Santos. On the side of the Forte Football League, Galo, Fluminense and Fortaleza.

The intention is to sit down with the criteria for the distribution of money for the two parties and try to reach an agreement so that everyone can join. Libra already has a determined money split that evolved during the discussions – it currently has a ceiling between major and minor, split with 45% equal, 25% for prizes and 30% for fan engagement.

Liga Forte Futebol wants to reduce the difference between the club that earns the most and the one that collects the least. And, after calculations, it questions some of the criteria adopted by Libra. There’s an understanding that, in the end, it’s going to evolve to be everyone together that’s a halfway point.

The leaders of Forte Futebol, however, wanted to form the group before sitting at the table with the members of the League and are open to talking with the group.

The main reason is that more and more clubs are realizing that they will lose a lot of money from the pie if the rights are not sold single-handedly by a League.

More advanced, Libra already structures a governance model to receive investment. Therefore, Libra calculated what the value of the League would be with the joint sale of Series A and B and the inclusion of TV rights, among others. The projection presented at the last meeting is R$ 4 billion in annual collection with the Brazilian.

This amount represents more than double what is collected by all clubs with TV rights currently in the Brazilian: the current amount is around R$ 1.7 billion, including open, closed and pay-per TV rights. -view. Plates are traded separately, and naming rights are sold by CBF. All this can be included in the new League, depending on the agreement of the clubs.

The most relevant commercial decisions about the championship, according to Libra’s governance rules, would be taken by the clubs of the two divisions, with a two-weight vote for Serie A. But the management of the League itself would be handled by hired market professionals and without political influence from clubs. All these discussions have already taken place within Libra. Now, to actually evolve into a League, there will have to be an extension for all clubs.

About Abhishek Pratap

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